Be ready to pay more for your online purchase soon
I know you don’t like to pay more. Me too.
However, we will all have to start paying an extra 10 percent for things we buy online. To be more specific it’s only for imported goods and it’s only for items valued at RM500 or lower.
I also wonder why not 10 percent tax on items above RM500. Reason is because usually the high priced items are purchased by the ones who are richer and thus, they should be able to afford the extra 10 percent tax. In fact if the local manufacturers could produce these items, the higher priced items may be easier versus the cheaper items which may need a super huge economies of scale.
Anyway, I am just a normal Malaysian. No idea if any relevant government official could see this and take this for consideration.
Article in malaymail.com Communications Minister Fahmi Fadzil said that the 10 percent sales tax on online purchases is only for imported goods valued under RM500.
“It only applies to products imported from overseas that are sold online in Malaysia. Products produced in the country are not affected. So, I hope this will clear up misunderstandings among the public about the tax.”
The Royal Malaysian Customs Department (JKDM) announced yesterday that Malaysia will start charging a 10 per cent sales tax on low value goods (LVG) sold online from January 1, 2024. Please do read the article in full here: Article in malaymail.com
Perhaps the tax collected can also be used to help local manufacturers too
The information on all the imported goods which are taxed and could be produced by the local manufacturers should be given to the local manufacturers. If we continue to build up the local manufacturers, then we will help the economy and create more potential employments. If we did not do anything beyond just the tax part, then we can tax forever and the local manufacturers will still not know of the potential opportunities. Let’s have a comprehensive plan if this tax is also to encourage the purchase of the same item from local manufacturers.
Please feel free to share this article too. (links are all below) Thank you!
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
Alternatively, Follow me on Telegram here.
Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.